1. Competition & Positioning Slide 1 © The Delos Partnership 2005 Dairygold Workshop Competition Analysis & Tesco Positioning

2. Competition & Positioning Slide 2 © The Delos Partnership 2005 Irish Competition Analysis Kerry #1 Glanbia Green Isle – Northern Foods Unilever

3. Competition & Positioning Slide 3 © The Delos Partnership 2005 Competition – CRM What CRM system do competitors use. Where do they have Tesco and others positioned? What are their Tesco Price, Volume and Growth targets?

4. Competition & Positioning Slide 4 © The Delos Partnership 2005 Tesco Account Management Tesco Technical “Buyer” Tesco Budget Holders Tesco Procurement & Supply Chain Who are the Competitors Tesco Account Managers and who are their key Tesco Targets?

5. Competition & Positioning Slide 5 © The Delos Partnership 2005 Workshop 1.What methods & channels do competitors use to win Tesco business? 2.How can you stop them? 3.Should you even try to stop them? 4.How do they make sure that they get the best deal and value for their products?

6. Competition & Positioning Slide 6 © The Delos Partnership 2005 Collaborative Supply Chain Innovation Innovation Vision Strategy Prioritisation Prioritisation Demand Support Supply Innovation Innovation Vision Strategy Prioritisation Prioritisation Demand Support Supply Innovation Innovation Vision Strategy Prioritisation Prioritisation Demand Support Supply Which competitor has the most valuable collaborative supply chain Suppliers Dairygold & Competitors Tesco  Common Spends? – Common Suppliers?- Common Customers?  Strategies, Opportunities, Threats across the complete supply chain?

7. Competition & Positioning Slide 7 © The Delos Partnership 2005 Who has most Tesco Leverage? Bargaining Power & Leverage Tesco Value delivery (€) Niche Products with USP’s Long Term Agreements Most Favoured Nation Lowest Costs Best Supply Chain Best People Collaborative not Confrontational Leverage Key Developments Best Supplier Performance Assessment

8. Competition & Positioning Slide 8 © The Delos Partnership 2005 TOTAL VALUE DELIVERY PROCUREMENT LOYALTY 0% 100% 100% 0% SUPPLIER DEVELOPMENT (Capable of becoming strategic) STRATEGIC SUPPLIERS (Normally few – major competitive edge) APPROVED SUPPLIERS (Majority of Suppliers) SUPPLIER ELIMINATION (Low / No value & service delivery) Supplier Classification

9. Competition & Positioning Slide 9 © The Delos Partnership 2005 CRITICALITY TOTAL ANNUAL COST HIGH LOW HIGH STRATEGIC CRITICAL NUISANCE LEVERAGE Positioning Matrix

10. Competition & Positioning Slide 10 © The Delos Partnership 2005 STRATEGICCRITICAL NUISANCELEVERAGE Ensure Supply - Even pay a premium Build close relationships. Work to reduce the critical impact Purchasing Card / Blanket orders Minimise attention. Review annually Use dynamic strategies to drive profit Global Market awareness. Consider Indirect Leverage Top level relationships. Key Account Management Continuous joint total value creation USE e FOR ALL Resulting Actions

11. Competition & Positioning Slide 11 © The Delos Partnership 2005 Tesco Strategy Goal? CURRENT / PERCEPTIONREALITY / FUTURE

12. Competition & Positioning Slide 12 © The Delos Partnership 2005 Workshop What Dairygold products and services are strategic critical to the Tesco business? How can they be moved from leverage to Strategic? Does leverage affect the Tesco Supplier Partnering and Relationships?

13. Competition & Positioning Slide 13 © The Delos Partnership 2005 Dairygold Product Goals Define the Product status in the company and global market Define future improvement opportunities Start to implement improvement priorities now

14. Competition & Positioning Slide 14 © The Delos Partnership 2005 Tesco Competitive Analysis % Share of Tesco versus Competitors Current year product or service deal summary Current year deal – Key Issues Tesco Product volumes and market segment positioning. Contribution analysis. Key selling options Market prices and selling strategy Manufacturing and technologies Supply and Demand Supply Chain Opportunities Process Improvement Opportunities